Ermenegildo Zegna to float in New York
Italian luxury menswear brand Ermenegildo Zegna is preparing for a listing in New York in a deal that will still allow its founding family to retain a majority stake.
The company is executing what is known as a "blank cheque merger" with Investindustrial Acquisition Corp, which is a special acquisition company or Spac, that will enable it to list while the Zegna family retains a circa 62% controlling stake.
It is expected the float will raise $880m, including the $403m that Investindustrial Acquisition Corp launched when it first floated, and that the Zegna business will be valued at around $2.5m upon flotation.
The proceeds will be spend on developing its menswear business and acquiring new brands. In 2018 Zegna acquired an 85% stake in US menswear designer Thom Browne's brand, giving it a foothold in a more contemporary market.
CEO Ermenegildo “Gildo” Zegna said of the float: “Over 111 years ago, my grandfather and namesake founded Zegna with the belief that caring for both the natural environment and for people was the bedrock for creating the finest textiles and a successful brand.
"[We] will continue to invest in creativity, innovation, talent and technology in order to sustain Zegna’s leadership position in the global luxury market”.